(RALEIGH) -- Gov. Beverly Perdue released her budget plan Thursday morning. At a news conference at the legislative building she announced a series of proposals involving both cuts and revenue increases to close a $2.4 billion budget gap.

Her cuts would reduce and reorganize 176 state programs and do away with more than 5,000 positions. Combined with targeted agency cuts, state government will eliminate an estimated total of 10,000 positions.

"The budget that I propose today in comparison to that budget that I inherited is $2.2 billion less, spends 11 percent less per capita and it does all this in the realities of 400,000 plus new people moving into our state," said Perdue.

The Governor's two-year budget plan cuts $3.2 billion in state spending. Perdue stressed that the plan preserves every existing, state-funded teacher and teacher assistant position.  The corporate income tax would go down from 6.9 percent to 4.9 percent. She said this would reduce the burden on businesses by almost $500 million. She said this would help create over 10,000 jobs over the next three years.

She would also keeping part of a temporary sales tax increase that is set to expire on June 30.  Her plans calls for three-fourth of the one-cent tax remain in place.  This goes against the desires of the Republican majority in the legislature.  GOP leadership has vowed to let the sun set on the entire penny sales tax.

"I stand ready to work with the legislature to create jobs and enhance North Carolina as the best place to do business, to strengthen the state’s education system and to ensure that government works smarter and more efficiently for all citizens," said Perdue.